Rival investment banks were taken aback by the fanfare last week over Merrill Lynchâs move to set up a dedicated team to advise companies on the growing threat of activist investors.

Merrill said its push in activist investor defence was in response to high-profile cases in Europe and the UK, but an executive at a rival described it as “nothing more than a PR gimmick”.

He said: “We have been doing this for years. We have a strong reputation on defence as well as offence and you have to wonder what Merrill Lynch is doing for its clients before this.”

Over to activist investor Knight Vinke, which hardly seemed to be quaking in its boots. A spokesman said: “It seems to be an interesting marketing tool. But if they want to counter Knight Vinke, the obvious thing to do is to engage with us to add value.”